Guoxuan Hi-Tech issued A-share convertible bonds approved for the better operation of the company in order to become bigger and stronger

SMM10, July 21: on October 19, Guoxuan High Technology Co., Ltd., a listed company on the Shenzhen Stock Exchange, issued a notice saying that the company's application for public issuance of convertible corporate bonds has been examined and approved by the China Securities Regulatory Commission (CSRC).

Prior to this, on September 17, Guoxuan Hi-Tech issued a feasibility analysis report on the use of funds raised by the public issuance of A-share convertible corporate bonds (second revision). Guoxuan Hi-Tech said in the report that the total amount of funds raised in this issue of convertible corporate bonds will not exceed 1.85 billion yuan (including 1.85 billion). The net amount of funds raised after deducting the issuance fee will be used in the power lithium battery industrialization project, that is, Guoxuan Nanjing annual 15GWh power battery system production line and supporting construction project (phase I 5GWh) and Lujiang Guoxuan new energy annual 2GWh power lithium battery industrialization project. And replenish liquidity.

Guoxuan Hi-Tech's main products include power battery systems and power transmission and distribution equipment. Power battery system includes power lithium battery cathode material, single lithium ion battery (cell), power lithium ion battery module, battery management system BMS and battery package. Specifically, the company uses the self-developed cathode material as the key raw material to make the cell, and then through the pack group to form a power battery module, coupled with the mature BMS battery management system to get the battery package. As a key component in the field of new energy vehicles, the company's products are widely used in the fields of pure electric commercial vehicles, passenger vehicles, logistics vehicles and hybrid electric vehicles, and have established long-term strategic cooperation with a number of major new energy vehicle enterprises in China.

Guoxuan Hi-Tech's business scale has grown rapidly in recent years, with operating income rising from 4.758 billion yuan in 2016 to 5.127 billion yuan in 2018, with an average annual compound growth rate of 3.81%. From January to June 2019, operating income reached 3.607 billion yuan, an increase of 38.36 percent over the same period last year.

Guoxuan Gaoke said that in order to comply with the national energy structure adjustment strategy and promote the development of green battery industry, Nanjing Guoxuan New Energy Plan added 5GWh power lithium battery capacity, Lujiang Guoxuan New Energy Plan added 2GWh power lithium battery capacity, which is in line with the current industry development trend, but also in line with the national energy structure adjustment strategy.

This convertible bond is also in line with the domestic strategy of implementing the development strategy of new energy vehicles, and will meet the growing market demand for power batteries in the process of rapid development of new energy vehicles; it will help to improve the technical level of power batteries, promote the large-scale production and industrial agglomeration effect of power batteries, and promote the complete industrial system and innovation system of our country from the key parts to the whole vehicle. It is beneficial to the energy saving of independent brands and the technological progress of new energy vehicles in China. Guoxuan Hi-Tech's existing production equipment has been unable to meet the growing market demand, in order to further consolidate the market position, speed up the pace of technological progress and industrial upgrading, and improve product quality, the implementation of the project is particularly important.

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